Catering to Maori sensitivities about further loss of land, Maori Carbon Collective offered a chance to exploit the value of carbon credits on forested land with what it called no risk of losing ancestral land. Aorangi Awarua Trust is now facing a $43.7 million claim on a Carbon Collective deal that went sour.
Aorangi Awarua owns land in the North Island hinterland near Taihape. In early 2020, it signed a deal with Maori Carbon Collective Ltd designed to exploit carbon credits generated under New Zealand’s emissions trading scheme. It was proposed some 2000 hectares of Aorangi Awarua land would be planted in forest with Maori Carbon managing the forest for the next thirty years and value of resulting carbon credits shared. Within one year, it had turned to custard. Aorangi alleges Maori Carbon unlawfully misappropriated part of its share in the joint venture, unilaterally transferring units valued at a little over $300,000. Aorangi cancelled the project. Maori Carbon sued, seeking a court ruling that the project still stood; failing that an order for loss of profits totalling $43.7 million.
At a preliminary hearing, Aorangi asked the High Court to strike out Maori Carbon’s loss of profits claim. Their joint venture agreement specifically excluded any claims for consequential loss, it said. Associate judge Johnston dismissed the strike out application. A full trial is needed to determine whether any proved loss of profits could be considered a recoverable direct loss, rather than an excluded consequential loss.
Aorangi Awarua Trust v. Steedman & Maori Carbon Collective Ltd – High Court (17.03.22)
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